Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As part of you work for an owner, you are trying to determine a mechanism for selecting the cheapest bid. The scope of your project

As part of you work for an owner, you are trying to determine a mechanism for selecting the cheapest bid. The scope of your project lends itself into a remeasurable type contract. You managed to convince your manager to proceed with this type of contract. However, she would like to ensure that there is an incentive for the contractor to minimize the actual costs. As such, she insists that there is not only a cap/ceiling on the bid, but also a risk/profit sharing agreement. The terms of this agreement state that the contractor will gain or lose a percentage (referred to as "p") of any profit or loss measured relative to the "cap" which is set by the client. Express the total estimated cost provided by a contractor as a function of "cap", "p", individual unit prices "UPi", quantities "Qi", and any other variable you might need (i an index referring to package i, there is a total of n packages).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management A Systems Approach to Planning Scheduling and Controlling

Authors: Harold Kerzner

10th Edition

978-047027870, 978-0-470-5038, 470278706, 978-0470278703

More Books

Students also viewed these General Management questions

Question

Complexity of linear search is O ( n ) . Your answer: True False

Answered: 1 week ago